Homeowners Cut Prices as Buyers Remain Wary of Mortgage Rates | Global News Avenue

According to new data, one in five U.S. homeowners have lowered their listing prices as high loan rates keep buyers out.

Zillow said Wednesday that while the cost of borrowing remains a barrier, hunters have not had so much negotiation power with homeowners in five years. The company said more and more homes are on the market – the number of new listings in January rose nearly 12% year-on-year, while pending sales fell 3.6%.

Zillow chief economist Skylar Olsen said last month, many owners (almost 23%) pushed back prices to attract quotes.

“Buyers are still struggling with high monthly fees,” Olson said in a press release. “Sellers are in a good position to lower prices to close the deal.”

House hunters watched mortgage rates rise from about 6.5% in January to 7.04% last month, Zillow said. The rate has not been seen in decades, with the recent average 30-year interest rate Move within range About 7%.

Fed Chair Jerome Powell Tell the councillor on Tuesday Central banks have less ability to lower mortgage rates than to push them to increase mortgage loans.

The Fed maintained relatively high Fed funding rates to cool the economy and inflation. Powell and other officials said they do not intend to slow this down as soon as possible. Mortgage rates are closer to 10-year fiscal yields, which usually track traders’ forecasts for future Fed funds.